Aviation Daily

Staff
The alliance between American and the Dade County Board of Commissioners - to defend the planned $900 million expansion at Miami Airport, benefiting the carrier - is straining as the team prepares to go to trial Feb. 20 to defend the project against five airlines suing to block it. In yesterday's Miami Herald, American accused several commissioners of using pressure to secure frequent flyer upgrades during negotiations on the deal. "One thing has no bearing on the other," an airport spokeswoman told The DAILY.

Staff
Honeywell said Philippine aviation officials selected it to install the Honeywell/Pelorus satellite-based landing system at three national airports, the first one this fall. Executives of the Philippine Department of Transportation and Communications/Air Transport Office said the Philippines intends to lead the Asia-Pacific region in deploying Global Positioning System-based capabilities, Honeywell said.

Staff
Tower Air's revenue passenger miles rose 15% to 283 million in January on 16.1% more capacity. Available seat miles totaled 412 million. The gain reflects increased traffic to Tel Aviv, Los Angeles, San Juan and San Francisco. Load factor remained at 68.7%. It transported 99,000 passengers, up from 80,000 in January 1995.

DOT

Staff
DOT is aiming to decide this week how it will allocate vacant U.S.-South Africa frequencies, formerly USAfrica's, a department official said. DOT will either go forward with its show cause order allocating the frequencies to World Airways and Southern Air Transport or re-open the proceeding, allowing additional parties to apply for them.

Staff
Prime Hospitality Corp. began construction of five new AmeriSuites Hotels in January as part of its plan to double its AmeriSuites chain from 20 to 40 properties by the end of 1996. Two are in the Atlanta area, and the others in Dallas, Memphis and San Antonio. Prime plans to build up to 100 new hotels by the year 2000. A hotel at Miami Airport is scheduled to open soon.

DOT

Staff
DOT has renewed Fast Air's authority to operate scheduled cargo service between Santiago and Los Angeles. The carrier serves the route with DC-8- 71s (DAILY, Feb. 5). (Docket OST-96-1033)

Staff
DOT has renewed for two years United's exemption authority to operate code- share service with partner Lufthansa between the U.S. and Almaty, Kazakhstan; Minsk, Belarus; Tashkent, Uzbekistan; Tallinn, Estonia; Vilnius, Lithuania; Asmara, Eritrea; Dar es Salaam, Tanzania; Malta; Tunis, Tunisia, and Thessaloniki, Greece. All service is operated via Frankfurt. The department dismissed United's request for renewal of its exemption authority to serve Kiev, Ukraine, noting that the carrier holds certificate authority for the route. (Docket 50398)

Staff
American Society of Travel Agents says Sabre's decision to abolish a toll- free help desk for travel agents is a "nickel and dime action" that comes at the wrong time. The toll-free line will shut down March 9. ASTA President Jeanne Epping said, "I would like to thank Worldspan, Apollo and System One for not following Sabre in this short-sighted decision to cut corners at the expense of their customers."

Staff
TWA's traffic slipped 1.8% last month, compared with January 1994. Capacity for the month was up 0.7%, and the load factor lost 1.5 percentage points, to 58.8%. TWA said systemwide freight fell 19.1% for the month while cargo dropped 8.8%. The airline carried 0.6% more passengers. January 1996 January 1995 Rev. Passenger Miles 1,765,200,000 1,797,100,000 Available Seat Miles 2,999,500,000 2,979,700,000 Load Factor (%) 58.8 60.3

Staff
USAir received renewal of its authority to operate scheduled service between Philadelphia and Paris. The carrier currently offers daily nonstop service on the route, using Boeing 767 aircraft. (Docket OST-95-1000)

Staff
National Transportation Safety Board is leading a U.S. team to aid in the investigation of the crash early yesterday of a 757 operated by Alas Nacionales, a Dominican charter airline, soon after takeoff from the coastal resort of Puerto Plata. Alas leased the aircraft, and the safety board said it was registered to Birgen Air of Turkey. The aircraft crashed into the Atlantic Ocean with 189 persons aboard, most of them German tourists headed home.

Staff
Continental's traffic fell 4.6% last month from that of January 1994, but the airline's capacity was down much further, by 15.2%. Pulling back service pushed the carrier's load factor up 6.9 percentage points, to 62.7%. Traffic of regional subsidiary Continental Express increased 24.2% on 8.8% more capacity. The load factor was 45.0%, a gain of 5.6 points. January 1996 January 1995 Rev. Passenger Miles 2,998,252,000 3,144,076,000 Available Seat Miles 4,782,206,000 5,639,566,000

Staff
Hawaiian Airlines won DOT approval of its application for two-year authority to operate between Honolulu and Nadi, Fiji. (Docket OST-95- 929)

Staff
Abacus Distribution Systems has implemented the Abacus Transport Network in Bombay. The computer reservations system says it is the first to offer a dedicated network for agents in India.

Staff
AlliedSignal said its fourth quarter net income increased 14% to a record $233 million and full year net income rose 15% to a record $875 million, compared with the same periods of 1994. Lawrence Bossidy, chairman, said the company is in a "strong position to deliver another year of 13% to 17% earnings growth in 1996 despite forecasts of slower economic growth in the U.S.

Staff
Madrid will host the Travel Industry Association's Pow Wow-Europe 1996 Sept. 16-18 at the Palacio Municipal de Congresos. Pow Wow is a trade show and tourism academy designed to promote travel to the U.S. from Europe. Pow Wow-Europe is an annual event that gives U.S. travel suppliers the opportunity to generate new business and has become the forum for introduction of tour operators from new markets in Eastern Europe to the U.S., TIA said.

Staff
U.S. and Japan adjourned the current round of all-cargo negotiations yesterday in Tokyo without an accord. They agreed to resume Feb. 28 in Washington.

Staff
YTL Corporation of Malaysia and Apsara, Cambodia's agency in charge of overseeing development of Siem Reap Province, are negotiating a proposal to build a tourism park. YTL has proposed developing several luxury hotels, a commercial center and cultural and sports facilities over 10 years. Visitors to temples in Angkor totaled 50,000 in 1995, Cambodian officials report. The temples have been picked as areas to be promoted for tourism development. Foreign arrivals in Cambodia in 1995 were up 25% from 1994 to 219,680.

Staff
DOT granted American Trans Air authority to operate scheduled combination service between New York and two points in Ireland, Shannon and Dublin. The carrier said it plans to begin operating one weekly New York-Shannon roundtrip May 3, a weekly New York-Dublin roundtrip May 5 and two weekly New York-Shannon-Dublin roundtrips in June, using 362-passenger Lockheed L- 1011s and 216-passenger Boeing 757s (DAILY, Jan. 2). The carrier also has applied for renewal of its authority to operate scheduled combination service between New York and Belfast, Northern Ireland.

Staff
Talks between Boeing and the Airbus Industrie partners on a very large commercial transport aircraft, shelved last year after several meetings, have been terminated by the Europeans. "They finally saw it was in Boeing's interest to keep the talks going," a source said. Boeing is evaluating enlarging its 747 series.

Staff
Hawaiian Airlines board members have elected John Adams, president of Smith Management Co., chairman of the board of directors. Former Chairman Bruce Nobles will stay on as president and chief executive. The changes will not affect Nobles' role in running the carrier, said Adams.

Staff
Reno Air, like its rival Alaska Airlines, is surviving the West Coast battle between Southwest and United by paring costs, squeezing the most out of its relationship with American, avoiding head-on conflict and just holding on. "It's been a long road to turnaround," Paul Tate, Reno Air's chief financial officer said recently at a financial conference. But Reno finally is there. For the first three quarters of last year, it had operating income of $3.4 million, compared with an $8.2 million loss in the same 1994 period.

Staff
Kiwi International Air Lines yesterday reported an improved financial performance in 1995 but turned in a $770,000 net loss for the year. The airline reported a $24.7 million net loss in 1994. While Kiwi acknowledged that it still is trying to line up $5 million through a private placement, Chief Executive Jerry Murphy emphasized the carrier's fourth quarter net profit of $94,000, a turnaround from a $7.9 million net loss in the same 1994 period. "We have needed to stabilize the company, which I believe we have done," Murphy said in a telephone news conference.

Staff
American Association of Airport Executives has added to its World Wide Web site the ability for users to listen to an audio version of its weekly Aviation News Today television program. Users download free of charge the software required to listen to the program. The address is http ://www.airportnet.org/news.htm.

Staff
Industry darling ValuJet posted strong fourth quarter and yearend 1995 results yesterday but warned Wall Street its first quarter may not be as rosy as expected. The carrier said unusually bad weather in January accounted for poor performance so far this year, but it also disclosed that its foray into Florida markets has not gone as well as planned, and it will receive its second and third MD-80 aircraft a month late. For the year, ValuJet reported net income of $67.8 million or $1.13 per share, up from $20.7 million or 44 cents per share in 1994.